Board Update/Kevin Roche - Board President

I would like to start off thanking the board for the

confidence again in electing me to the chairmanship posi-tion. In the past, the board has had a good track record of helping set strategic goals for our company and then empow-ering individuals to fulfill those goals. I plan on continu-ing in this direction.

The high protein project we have started construction on fulfills all major goals we have set as a company when select-ing a project. This investment accomplishes the criteria of having short payback years, having con-tinued inves-tor distribu-tions and using cutting edge technology balanced with proven engineering and equip-ment. The project also fulfills

the original goal of the com-pany which was to add more value to a bushel of corn. This expansion will continue the path to put UWGP as a leader in the industry. I will end with my personal

goal. As good fortune has come our way as in-vestors, I hope others pay it for-

ward to make a difference around them! - God Bless

INSIDE THIS ISSUE CFO/GENERAL MANAGER 2

PROCESS IMPROVEMENT MANAGER

3

PRODUCTION MANAGER 3

SAFETY MANAGER 4

Dan Wegner - Commodities Manager “Consumer Choice”

A s American’s, we are blessed with many freedoms; many of which we

take for granted. Consumer choice is one of these that most Americans pay no at-tention to as they shop for various items on a daily basis. We browse through the grocery store and are bombarded with choices, take cereal for example: sweet-ened, non-sweetened, gluten free, non-gmo, bulk to fancy packaged and not to mention the 50+ brands. But have you

given any thought to what your choices are for gasoline in your car or truck? You might have the choice of 87, 89, or 91 octane which may or may not contain ethanol but those are your choices. More recently, we have begun to see more E85 pumps, making available another choice for those with flex-fuel vehicles. Even more recently has evolved the blender pumps, which are limited in numbers, but offer more choices. Many offer E10,

E15, E30 and E85 along with a “premium” often ethanol free gas. These pumps offer consumers choices. Depend-ing on what the particular demand is at the time of fueling, the consumer can choose the appropriate fuel. If the de-mand is lawnmower gas, then chose to

pay the 60 cent premium price for the small engine, besides you likely are get-ting a 5 gallon can that will last you sev-eral months in the mower. But if you are filling up your flex-fuel pickup truck, it likely pays you to choose E85 that is $1.30 cents per gallon cheaper than pre-mium gas, (+/-$20 for a fillup) and likely gets very similar mileage. One major problem with our political system is, of-ten times the lobbyists who make the most noise or have the most money end up getting their way with laws written in this country. Small engine manufacturers are a great example, they use less than 1% of all the gas consumed in the United States, but yet have political clout. When

July 2015 Volume 12, Issue 2

Continued on Page 2

“...often times the lobbyists who make the most noise or have the most money end up getting their way with laws written in this country.”

“To add value to locally grown grains and provide members with a good return on invest-ment and be good stewards to our employees and commu-nity.”

- UWGP Mission -

Kevin Roche

Dan Wegner

“The project also fulfills the original goal of the company which was to add more value to a bushel of corn.”

Annual Meeting— April 9, 2015

United Wisconsin Grain Producers 2 July 2015

Dan Wegner - Commodities Manager (continued)

Barb Bontrager - CFO/General Manager

setting a law that affects gasoline con-sumption in the United States, should-n’t the demand that accounts for 99% of gasoline consumption have the clout? As investors in United Wisconsin Grain Producers LLC (UWGP) and rural American citizens, it’s time to speak up and get vocal about your lack of choices not only at the pump, but also in the vehicles you buy. Every vehicle sold in America should be a flex-fuel vehicle, unfortunately most are not. It blows my mind that most

every model is available as a flex-fuel in Brazil. That’s right, you can buy Honda, Toyota, Ford, GM, Dodge, and the list goes on….most every model is flex-fuel in South America, but NOT in America. UWGP is collaborating with several major industry organizations and gov-ernment agencies such as the USDA, Wisconsin Department of Agriculture, Growth Energy and Wisconsin BioFu-els Association and many others, on a project to speed up E15 and other flex-

fuel infrastructure investments across the United States. Unfortunately, it takes big money to trigger projects like this, matching funds from government and private industry are coming to-gether to accomplish great things. We anticipate that programs like this will speed up the process of bringing higher ethanol fuel blends to more Americans. This is good for consumer choice, the renewable fuels industry, and rural America.

F or a year/season that appeared to offer little, if any, margin above input costs; our net profit from operations of $5.1 million for the first six months, is only

slightly below our average operating income on an annualized basis. Based on early reports, we are performing above average compared to our peers in the indus-try. We have begun construction of the new modified wet distillers grains (MWDG) pad/structure which is the first phase of the Maximized Stillage Co-products (MSC) project and are still on-target to start this new system one year from now. In Decem-

ber of last year, the United Wisconsin Grain Producers LLC (UWGP) Board of Directors approved this $25 million project which will allow us to extract 3 to 4 pounds per bushel of high protein (about 50% purity) feed stream from our existing distillers dried grains with solubles (DDGS) feed stream and also increase our oil yield. Given the additional oil revenue and the premium mar-ket value of this new high protein feed, we expect to recover our cost of this project in about 4 years or less. Below is a snapshot of our financial results for the first half of 2015 compared to 2014. The complete reviewed financial state-ments and footnotes are available from our website. Please keep in mind as you make year to year comparisons that 2014 was our second best year, almost double our five year average. Our five year average annual net income is about $13.5 million (24 cents per gallon of ethanol produced) which is an average of 20% return on investment.

The UWGP Board of Directors approved a mid-year membership distribution again this year. A $100 per membership unit for a total distribution of $2,834,600 was approved on July 10th for all members of record. We expect to mail the distribution on or around July 30th 2015. This brings our total member distributions to date (since inception) to $4,425 per membership unit, $126 million total. For those of you who purchased units for $1000 during the initial equity drive (2003-2004) you have received 4.4 times your initial investment in dividends and your units are currently trading 3 to 3 ½ times your investment. We are proud to be a part of this amazing success and truly appreciate your continued confidence as we continue this journey.

% V a r ia n c e

G a llo n s o f E t h a n o l P r o d u c e d 1 .3 %

B u s h e l o f C o r n G r o u n d 1 .0 %

Y ie ld - G a llo n s d e n a t u r e d e t h a n o l/ b u o f c o r n p r o c e s s e d 0 .3 %

A v e r a g e E t h a n o l P r ic e p e r g a l lo n ( n e t b a c k t o p la n t ) - 3 7 .0 %

A v e r a g e C o r n P r ic e p e r b u s h e l - 1 5 .8 %

T o t a l R e v e n u e s w it h r e a liz e d h e d g in g a c t iv it ie s - 2 3 .7 %

G r o s s M a r g in b e f o r e u n r e a liz e d h e d g in g a c t iv it ie s

N e t In c o m e b e f o r e u n r e a l iz e d h e d g in g a c t iv i t ie s

N e t In c o m e b e f o r e u n r e a l iz e d h e d g in g p e r g a l lo n e t h a n o l - 5 5 .7 %

U n r e a liz e d g a in ( lo s s ) f r o m h e d g in g a c t iv it ie s

N e t g a in a f t e r a l l h e d g in g a c t iv it ie s - 7 5 .1 %

W o r k in g C a p it a l

T o t a l A s s e t s

M e m b e r E q u it y , 2 8 ,3 4 6 u n it s a u t h o r iz e d , is s u e d , & o u t s t a n d in g

S ix M o n t h s E n d e d 6 / 3 0 / 1 5

S ix M o n t h s E n d e d 6 / 3 0 / 1 4 V a r ia n c e

2 8 ,3 7 5 ,2 6 9 2 8 ,0 1 8 ,8 2 8 3 5 6 ,4 4 1

9 ,7 6 9 ,9 1 3 9 ,6 7 6 ,7 4 8 9 3 ,1 6 5

2 .9 0 4 2 .8 9 5 0 .0 0 9

$ 1 .4 4 $ 2 .2 8 ( $ 0 .8 4 )

$ 3 .9 3 $ 4 .6 7 ( $ 0 .7 4 )

5 3 ,5 1 6 ,0 7 7$ 7 0 ,1 2 6 ,7 8 1$ ( 1 6 ,6 1 0 ,7 0 4 )$

6 ,6 1 8 ,4 0 0$ 1 2 ,9 1 4 ,6 3 4$ ( 6 ,2 9 6 ,2 3 4 )$

5 ,1 5 5 ,1 8 8$ 1 1 ,4 8 4 ,7 5 7$ ( 6 ,3 2 9 ,5 6 9 )$

0 .1 8$ 0 .4 1$ ( $ 0 .2 3 )

( 1 ,9 3 0 ,2 9 2 )$ 1 ,4 7 4 ,7 3 3$ ( 3 ,4 0 5 ,0 2 5 )$

3 ,2 2 4 ,8 9 6$ 1 2 ,9 5 9 ,4 9 0$ ( 9 ,7 3 4 ,5 9 4 )$

a s o f 6 / 3 0 / 2 0 1 5 a s o f 6 / 3 0 / 2 0 1 4

3 0 ,1 6 6 ,0 6 9$ 4 0 ,0 4 6 ,6 6 1$

5 6 ,9 6 9 ,4 8 6$ 6 6 ,1 8 7 ,7 6 2$

5 4 ,4 4 6 ,4 4 6$ 6 4 ,2 0 3 ,9 8 8$

Dan Groh - Process Improvement Manager

S ummer is a great

time of year, and 2015 is shaping up to be a good one. There have been some exciting things

happening at United Wisconsin Grain Producers LLC (UWGP). First off, I have accepted a new role here as the Process Improvement Manager and Barry Van Beek has come onboard as our Maintenance Manager. Two thousand fifteen brings quite a bit of excitement with our Maximized Stillage Co-products (MSC) project. This project is slated to start-up July

2016 and will extract a 50% high value protein stream from our dried distillers grains with solubles (DDGS), increase our corn oil yield, and provide some significant operational benefits by re-ducing fouling and increasing through-

put in our evaporators. Badger State Ethanol has been devel-oping this technology with Fluid Quip Process Technologies (FQPT) for the past seven years and now we will be the first “purpose-built” project in the United States. Engineering is well underway for our

project; we officially broke ground on July 8th to construct the first building. Since this is a fully customized build, in order to work seamlessly within our process, there is an enormous amount of planning and development. There is also quite a lot of forward thinking and planning that goes into the design to position us for potential future projects such as, plant capacity increases, elec-trical co-generation, and yield improve-ment technologies. We have always taken an approach of building it correctly the first time and that is our approach for this project as well. A well thought out plan with lots of input from our team will yield us a sound new process that further posi-tions us as one of the lowest cost pro-ducers in the industry.

July 2015

United Wisconsin Grain Producers 3

“There is also quite a lot of forward thinking and planning that goes into the design to position us for potential future projects…...”

Dan Groh

Scholarship Recipients

U nited Wisconsin Grain Producers LLC (UWGP) awarded ten scholarships of $1,000 each to local students at its Annual Meeting on April 9, 2015. UWGP

issued these scholarships in harmony with its continuing objective to contribute to its local community. Scholarships are awarded to area graduating seniors or alumni who are furthering their education at any college or trade institution as a full or part-time student. UWGP investors and their children along with customers/producers of UWGP are considered as well as students from the area high schools. For further information on scholarships, visit our website at www.uwgp.com/community. Back L-R: Bryce Anderson, Megan Water-

worth, Kayla Bonack, Scott Lenius Front L-R: Hannah Taylor, Lindsey Codding-ton, Emma Kuntz Missing: Hope Cupery, Danielle Warmka, Ethan Westra

• July 8, 2015—MSC Construction Begins • August to September 2015— Civil Work • Sept 27, 2015 to Oct 3, 2015—Fall Shutdown/MSC Tie-ins • Building & Equipment Foundations in by Year End • July 2016—MSC Startup

Eric Kuntz—Production Manager

H appy Anniversary! It’s hard to believe we’ve been operating for 10 years already. When I moved here in March 2005, my oldest child was 7 years old. In a few short weeks, I’m taking her off to college. It doesn’t seem possible.

In the last 10 years we’ve processed 190 million bushels of corn into 1.5 million tons of distiller’s grains and 550 million gal-lons of ethanol. If all that ethanol was blended into E85 and used in vehicles that average 25 miles per gallon (MPG), that’s enough fuel to drive 16 billion miles! Since 2009, we’ve also extracted nearly 9.5 million gallons of corn oil, most of which goes into the production of another fuel, biodiesel. The numbers are impressive. None of this would have been possible without you, our investors. I’m extremely grateful for the opportunities this job has pro-vided, and look forward to what’s in store for this industry—and this company—in the next 10 years!

UWGP is looking for an individual to fill a vacancy in our production group due to the retirement of one of our employees. Phil Sommers is one of our 19 team members hired before we began operations in April 2005. Visit our website at www.uwgp.com/careers to learn more about this position.

Post Office Box 247 Friesland, WI 53935 Phone: 920-348-5016 Fax: 920-348-5009 E-mail: mail@uwgp.com We’re On The Web! www.uwgp.com

United Wisconsin Grain Producers 4 July 2015

Marc Berger—Safety Manager

W e are part of the ERI (Ethanol Risk Insurance) group, which consist of 79 ethanol plants throughout the United States. They conduct safety audits at each plant and give them a numerical rating. They perform two inspections a year at our

facility. At the end of each year, they compare all the ethanol plants to each other and give them a numerical ranking. The scores are based on audit scores, workman comp claims, and Occupational Safety and Health Administration (OSHA) illness/injury rates. The top twenty-five percent get the Safety Award of Merit. The top ten percent get the Safety Award of Excellence and the number one plant gets the Safety Award of Honor. This year, UWGP was ranked 3 out of 79 ethanol plants and received the Safety Award of Excellence.

Community Support/Events

UWGP sponsored a team of UWGP employees along with Keith Ripp to participate in the 1st Annual Columbia County K9 Golf Outing held on Saturday, June 20th at 8:30 a.m. at Kestrel Ridge Golf Course, Columbus, WI. The team of Brad Lewke, Marc Berger, Barry Van Beek and Steve Redeker won the golf outing. The team donated the winnings back to the K9 fundraising event - CONGRATULATIONS!

www.uwracing.com visit www.ethanolracingresearch.com for the com-plete race schedule for Mike Raskovic race team

Fair Time 2015